The federal government provides tax benefits that may help offset college expenses for those who qualify. Income limitations may apply. Keep in mind that a credit reduces tax liability and a deduction reduces income.
American Opportunity Credit
Students must be enrolled in college at least half-time for one period of the tax year, and be pursuing an undergraduate degree.
Lifetime Learning Credit
Students must be enrolled for at least one academic period beginning in the tax year. This credit is also allowed for courses toward a degree, educational credential or for classes taken to improve job skills.
Student Loan Interest Deduction
You may deduct student loan interest during all periods of required repayment. You’re not required to itemize to claim the deduction.
Tuition and Fees Deduction
You may be able to deduct the cost of higher education even if you do not itemize deductions.
See www.irs.gov or talk to a tax adviser for more more details about these benefits.